Gyrokinetic simulations of long wavelength ion temperature gradient (ITG) turbulence in the scrape-off layer (SOL) of a field-reversed configuration (FRC) find that zonal flows are nonlinearly generated and are the dominant mechanism for the nonlinear saturation of the ITG instability. After the ITG saturation, zonal flows remain undamped and gradually suppress the turbulent transport to a very low level. In the simulations with collisions, collisional damping gradually reduces zonal flow amplitude to a lower level, which allows finite ITG turbulence intensity and ion heat transport in the SOL. The steady state turbulence intensity and ion heat transport are found to be proportional to the collision frequency. This favorable scaling suggests that minimizing collisions (e.g. increasing temperature, reducing impurity content, etc) and preserving toroidal symmetry could improve plasma confinement in the FRC.